Transfer a business as a going concern

Where a business is sold as a going concern, the transaction is not taxable provided that all the following conditions are met:
· All the assets of the business (capital goods, reserves and goodwill) are transferred or a self-operated part of the business is transferred.
· The seller is a taxable person.
· The purchaser is or becomes a taxable person.
· The purchaser carries on the same kind of business without any significant interruption.
In that case, the seller must not charge VAT. The purchaser is not entitled to deduct any amount, unless it is charged by the seller by mistake. If, as a result of the transfer, the seller ceases trading, he must notify the Commissioner of Taxation accordingly within 60 days of cessation of trading by submitting an application for cancellation of VAT registration using form VAT 204 (in Greek). Also, if it becomes necessary for the purchaser to register, he must notify the Commissioner of Taxation within 30 days by submitting the relevant registration forms TD2001, TD1101 (in Greek).
Both parties are entitled, if they so wish, to submit an Application for Transfer of Tax Rights and Obligations using form VAT 103(in Greek). If it is approved, the seller must hand over his books and records to the purchaser and the purchaser must take over the seller’s previous rights and obligations. In order to be able to transfer tax rights and obligations: (a) the entire business must be transferred; (b) the vendor’s registration must be cancelled; and (c) the purchaser must not be registered already, but must become required to register or must register voluntarily. The seller’s registration is cancelled when the application is submitted without the need to submit an Application for Cancellation of VAT Registration. However, the purchaser must also submit the necessary registration forms (TD2001, TD1101)(in Greek).
Additional information on the above can be found in Information Leaflet 7(available in Greek).